Post on 07-Jul-2020
Investor presentationFinancial and market performance 2Q 2012
(11)-(8)%
(20)-(17)%
(5)-(2)% (6)-(3)%
8-11%
(3)-0% (4)-(1)%
(1)-2%
-22%
-18%
-14%
-10%
-6%
-2%
2%
6%
10%
14%
Total admarket
television internet magazines dailies outdoor radio cinema
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Radio7%
Magazines10%
Dailies6.5%
Cinema1%
Internet17.5%
Outdoor8%
Television50%
Advertising market landscape
-2-
Performance of advertising market segments in 2Q12
Advertising market structure
2Q12PLN 2.1 billion
5.5%
1pp
2.5pp
1pp
0pp
0pp
0pp
0.5pp
Source: 2Q 2012: ad spend estimates by: Agora (press based on Kantar Media and Agora’s monitoring, radio based on Kantar Media), Starlink (TV, cinema, Internet – comprise revenues from e-mail marketing, display, search engine marketing and affiliate marketing), IGRZ (outdoor); Advertising market forecast 2012 – Agora’s own estimates.
Quarterly ad spend performance
++3.53.5%%
++5.55.5%%
++2.02.0%%
--4.04.0%%
Advertising market estimates for 2012
--1.51.5%%
--5.55.5%%
(3)-0 %
0-3 %
outdoor
(11)-(8) %
(9)–(6) %
magazines
8-11 %
9-12 %
internet
(6)-(3) %
0-3 %
television
(20)-(17) %
(17)-(14) %
dailies
(5)-(2) %
0-3 %
Total ad market
(1)-2 %
3-6 %
cinema
0-3 %February 27, 2012
Forecast radio
August 10, 2012 (4)-(1) %
yoy
% c
hang
e
yoy
% c
hang
e
yoy
% c
hang
e
yoy pp change
-5%-3.5%
10.5%
-10%
10.5%
-8%
-19%-22%
-18%-14%
-10%
-6%-2%
2%
6%
10%14%
18%
Dailies Magazines Television Radio Outdoor Internet Cinema
Financial performance of the Agora Group
-3-
Source: consolidated financial statements according to IFRS, 2Q12;¹ excluding non-cash cost of share-based payments;
Net profit / (loss)
Operating EBITDA margin1
Operating EBITDA1
EBIT margin
EBIT
- D&A
- marketing & promotion
- non-cash expense relating to share-based payments
- staff cost1
- external services
- raw materials, energy and consumables
Operating cost, incl.:
- other
- tickets sales
- copy sales
- advertising
Revenues, incl.:
PLN million
(96.7%)
(8.2pp)
(52.7%)
(7.5pp)
(91.3%)
(8.9%)
(20.5%)
(79.1%)
1.4%
(0.2%)
(8.2%)
(4.1%)
-
(23.5%)
(22.3%)
(9.6%)
(11.3%)
yoy change
-
(6.6pp)
(47.9%)
(6.0pp)
(99.7%)
(2.5%)
(22.6%)
(79.5%)
2.0%
1.4%
(1.8%)
(2.5%)
6.6%
(15.0%)
(19.3%)
(7.7%)
(8.2%)
yoy change
(0.3)
8.6%
48.6
0.02%
0.1
46.7
42.5
1.8
159.2
174.1
124.3
564.3
99.2
59.1
81.0
325.1
564.4
1H2012
85.7
9.5%
0.8%
2Q2012
22.9
23.6
0.7
26.8
2.3
0.9
79.9
59.4
280.8
47.6
21.5
38.3
175.7
283.1
Reduced advertising expenditure, mainly in the Newspapers segment.
The drop caused mainly by a limited number of film premiers as a result of the European Football Championship.
The decrease caused by lower copy sales in the Newspapers (including Special Projects) and Magazine segments.
The decrease in ad revenues is mainly caused by the drop of advertising sales revenues in Gazeta Wyborcza and thenegative impact of European Football Championship, especially on outdooradvertising market.
The decrease relates to lower production volume of Special Projects.
The growth of sales of printing services to external clients balanced lower yoyrevenue from the sales of SpecialProjects and food and beverages inHelios cinemas.
Segment performance: Newspapers (Gazeta Wyborcza, Metro, Special Projects, Printing Division)
-4-
Financial results¹
Source: financials: consolidated financial statements according to IFRS, 2Q12; ad spend in dailies: Agora, display advertising, 2Q12; ¹ incl. Gazeta Wyborcza, Metro, Special Projects, Printing Division; ² excluding allocations of general overhead cost of Agora S.A.;³ excluding non-cash cost of share-based payments and allocations of general overhead cost of Agora S.A.
- marketing & promotion
- staff cost excl. non-cash cost of share-based payments
- raw materials, energy and consumables and printing services
Operating cost2, incl.:
(29.4%)
(0.6%)
(6.8%)
(11.0%)
(30.9%)
(0.4%)
(0.6%)
(7.6%)116.2 233.4
50.4 103.9
33.7 66.7
11.5 23.0
- other revenue- special projects (including book collections)
- advertising revenue
- copy sales
Revenues, incl.:
PLN million
33.0
8.1
69.5
27.0
137.6
2Q2012
31.9%
(49.2%)
(14.6%)
(15.1%)
(10.5%)
yoy change
16.3(49.7%)
130.0(15.5%)
yoy change 1H2012
(13.7%) 272.0
(21.1%) 57.9
22.2% 67.8
Operating EBITDA margin³
Operating EBITDA³
EBIT margin²
EBIT²
(4.2pp)
(28.0%)
(2.6pp)
(26.2%)
19.7%
53.7
14.2%
38.6
(3.7pp)
(24.4%)
(2.6pp)
(24.6%)21.4
15.6%
29.3
21.3%
The decline results from limited advertising expenditure inGazeta Wyborcza and in Metro.
The decline results from lower copy sales of Gazeta Wyborczaand lower advertising expenditure in press.
The decline results from limited advertising expenditure by Gazeta Wyborcza and smaller yoy number of book collections in 2q12.
The decline results from lower yoy book series published by Special Projects and lower volumes of Gazeta Wyborczaand Metro.
The growth results mainly from higher by 28.9% yoy revenues from printing services to external clients.
0%
25%
50%
75%
100%
Jan'
09
Mar
'09
May
'09
Jul'0
9
Sep'
09
Nov
'09
Jan'
10
Mar
'10
May
'10
Jul'1
0
Sep'
10
Nov
'10
Jan'
11
Mar
'11
May
'11
Jul'1
1
Sep'
11
Nov
'11
Jan'
12
Mar
'12
May
'12
Gazeta Fakt Super Express Rzeczpospolita Dziennik Dziennik Gazeta Prawna
0
20
40
60
80
100
120
140
mar
-11
kwi-1
1
maj
-11
cze-
11
lip-1
1
sie-
11
wrz
-11
paź-
11
lis-1
1
gru-
11
sty-
12
lut-1
2
mar
-12
kwi-1
2
maj
-12
cze-
12
Wirtualna Polska - Orange Group Onet.pl GroupGazeta.pl Group Interia.pl GroupO2.pl Group
Super Express3.0%
Mecom (local)7.0%
Fakt8.0%
Other8.5%Polskapresse3
18.0%
Dziennik Gazeta Prawna3.5%
Gazeta W yborcza37.5% Rzeczpospolita
9.5%
Metro5.0%
Position of Gazeta Wyborcza in dailies segment
-5-
% share in copy sales of selected dailies¹
Source: copy sales: ZKDP, total paid circulation, Jan09 – Jun12, comparison; readership: Polskie Badania Czytelnictwa, execution MillwardBrown SMG/KRC, Apr12 - Jun12, N=12 050, CCS indicator (weekly readership), elaboration Agora S.A.; ad spend in dailies Agora, estimates, display advertising;
¹ comparison of major dailies only, on the basis of ZKDP data; ² the title appeared on the market on September 14, 2009 from the merger of Gazeta Prawna and Dziennik. Previous copy sales data based on copy sales of Gazeta Prawna. The copy sales of Dziennik Gazeta Prawna
in the period Sep 14-30 amounted to 126 thou. copies;3 in July 2011 PolskaPresse purchased remaining 75% stake in Dziennik Polski.4 Megapanel PBI/Gemius, mobile page views of the selected Internet publishers June 2011, June 2012;
3.3%
4.9%
5.5%
12.1%
1.8%
11.6%
0% 4% 8% 12% 16%
Dziennik Gazeta Prawna
Rzeczpospolita
Super Express
Metro
Gazeta Wyborcza
Fakt 3.6 mln
3.5 mln
0.5 mln
1.5 mln
1.0 mln
Weekly readership reach in 2Q12
1.7 mln
0pp
1pp
0.5pp
Dailies ad spend structure in 2Q12¹
0.5pp
1pp
0pp
0pp
2pp
0pp
Growing number mobile pageviews4
27%27%
No. of readers
yoy % and pp change
% s
hare
in c
opy
sale
s
(till Sept.11, 09 Gazeta Prawna2)
2Q12PLN 0.14 billion
19%
% reach
yoy % change
161%
71%
253%
190%
161%
20.0%
4.0%
3.5%
0% 5% 10% 15% 20%
Warsaw
local
national
Metro i Special Projects
-6-
Metro ad market share in 2Q12
Source: financials: consolidated financial statements according to IFRS, 2Q12; ad expenditure in dailies: Agora’s estimates, display advertising; ¹ excluding non-cash cost of share-based payments and allocations of general overhead cost of Agora S.A.;² excluding allocations of general overhead cost of Agora S.A.;
% share
Financial results Financial results
MetroMetro Special ProjectsSpecial Projects
(excl. Warsaw) 5%(total)
0pp
0.5pp
4.5pp0.5pp
18.2%1.3(50.0%)0.7EBIT
0.8
7.4
2Q2012
7.7%
(1.4%)
yoy change
14.3(10.8%)Revenues
PLN million yoy change 1H2012
Operating EBITDA1 (50.0%) 1.4
(1.1)
8.1
2Q2012
-
(49.2%)
yoy change
16.3(49.7%)Revenues
PLN million yoy change 1H2012
EBIT2 - (1.3)
106 publishers
4867 titles
10.5%
18.5%
8.5%
1%
0%
5%
10%
15%
20%
Internet ad market AGORA
49.3%
59.6%60.2%64.6%
68.7%
0%
20%
40%
60%
80%
Onet.pl Group Wirtualna Polska - Orange Group
Gazeta.pl Group Interia.pl Group o2.pl Group
-7-
Reach of websites of selected Internet publishers (June‘12)4
Financial results¹
Segment performance: Internet
Source: financials: consolidated financial statements according to IFRS, 2Q12; Internet ad spend: Starlink (display, search engine marketing, e-mail marketing and affiliate marketing); ¹ Internet division, Agora Ukraine, AdTaily, Trader.com (Polska) including print revenues, Sport4People (since November 2011); ² excluding allocations of general overhead cost of Agora S.A.;³ excluding non-cash cost of share-based payments and allocations of general overhead cost of Agora S.A.;4 Megapanel PBI/Gemius, reach, real users, pageviews of websites of the selected Internet publishers June 2011, June 2012;
0.
3%
13.4
mln
12.6
mln
11.8
mln
11.7
mln
9.6 m
ln
0.9
%
2.5
%
5.1
%
2.6
%
1.9pp4.3pp 2.8pp 0.5pp 4.5pp
Operating EBITDA margin³
Operating EBITDA³
EBIT margin²
EBIT²
- marketing & promotion
- staff cost excl. non-cash cost of share-based payments
Operating cost2, incl.:
- ad sales in verticals
- display ads
Revenues, incl.:
PLN million
7.9pp
135.0%
10.0pp
3200.0%
(18.2%)
3.3%(2.4%)
(27.0%)
18.7%
8.5%
yoy change
3.0pp
37.7%
4.9pp
193.3%
(22.8%)
5.5%(0.9%)
(25.4%)
14.0%
4.3%
yoy change2Q2012 1H2012
32.0 57.825.4 44.9
4.6 9.4
28.7 53.412.5 25.0
5.4 7.8
3.3 4.4
10.3% 7.6%
4.7 7.3
14.7% 12.6%
The share of mobile pageviews in total no. of pageviews on websites of selected Internet publishers (June‘12)4
0%
1%
2%
3%
4%
5%
6%
7%
Mar
'11
Apr'1
1
May
'11
Jun'11
Jul'1
1
Aug'11
Sep'11
Oct'11
Nov
'11
Dec
'11
Jan'12
Feb'12
Mar
'12
Apr'1
2
May
'12
Jun'12
Wirtualna Polska - Orange Group Onet.pl GroupGazeta.pl Group Interia.pl GroupO2.pl Group
% s
hare
% re
ach
no.of real usersyoy % change
yoy pp change
4.7pp
3.7pp
1.7pp
1.7pp2.0pp
Yoy
% c
hang
e
Display, e-mail marketing,
vortals
Display & e-mail
marketing
TOTAL(display, search
engine marketing, e-mail marketing and affiliate marketing)
Dynamics of ad expenditure in Internet in 2Q12
Display & e-mail
marketing
2D - 73%
3D - 27%
4.03.3
0
1
2
3
4
5
1H11 1H12
-8-
Segment performance: CinemaFinancial results
Operating EBITDA margin¹Operating EBITDA¹
EBIT marginEBIT
- D&A
- staff cost excl. non-cash cost of share-based payments
- raw materials, energy and consumables
- external servicesOperating cost, incl.:
- advertising - food & beverages- tickets
Revenues, incl.:
PLN million
(14.4pp)-
(16.7pp)(700.0%)
4.4%
5.0%
(10.9%)(2.8%)
1.0%95.8%
(27.6%)(23.8%)
(13.2%)
yoy change
(9.1pp)(56.9%)(10.3pp)
-
5.7%
6.6%
(3.3%)0.6%3.3%
104.4%(16.8%)(15.0%)
(7.1%)
yoy change
7.8%6.9
(2.7%)(2.4)
9.3
12.9
11.649.690.5
9.216.859.1
88.1
1H2012
(5.0%)(1.7)
(18.7%)
(6.4)
4.7
6.3
4.921.240.7
4.76.3
21.4
34.3
2Q2012
Source: financials: consolidated financial statements according to IFRS, 2Q12; ¹ As far as the Helios group is concerned EBITDA and operating EBITDA ratios are equal as in the period referred to in the table there was not any non-cash cost of share-based payments incurred;
Number of tickets sold in the Helios cinemas
1.21.6
0,0
0,5
1,0
1,5
2,0
2,5
2Q11 2Q12
Share of tickets for 3-D movies in Helios network of cinemas
2D - 69.5%
3D - 30.5%
2Q12
-- 2424%%
16.5pp
Planned growth of Helios network
x/x
■ city
cinemas / screens
planned cinemas/ screens
4 3822142H2012
7 0723662013
81
24
149
Screens
16 754
5 300
33 257SeatsCinemas
June 30, 2012 28
2014 3
Total planned 13
x/x
1H12
4.5pp
-- 1818%%
yoy % change
mill
ion
ticke
ts
yoy % changeyoy pp change
AMS25%
AMS ad market share3
-9-
Wyniki finansowe
Segment performance: Outdoor
5.0pp
Source: financials: consolidated financial statements according to IFRS, 2Q12; ad expenditure in outdoor: IGRZ;¹ excluding non-cash cost of share-based payments;² excluding cross-promotion of Agora’s other media on AMS panels if such promotion was executed without prior reservation;3 IGRZ: ad expenditure in outdoor.
2Q123.5%
Operating EBITDA margin¹Operating EBITDA¹
EBIT marginEBIT
- marketing & promotion - D&A
- staff cost excl. non-cash cost of share based payments
- maintenance cost - execution of campaigns
Operating cost, incl.:
- advertising2
Revenues, incl.:
PLN million
11.9%9.1
(0.3%)(0.2)
2.79.2
9.6
37.112.476.8
75.176.6
1H2012
(8.9pp)(49.2%)(9.6pp)
-
17.4%-
(4.0%)
0.5%(9.5%)(1.4%)
(10.5%)(10.8%)
yoy change
(14.7pp)(59.7%)(16.2pp)(85.0%)
30.0%(2.2%)
(7.7%)
(2.2%)(17.1%)(4.0%)
(20.0%)(20.2%)
yoy change2Q2012
40.039.1
38.56.8
17.9
4.8
4.51.3
1.53.8%
6.015.0%
The decrease results from smaller number of campaigns executed and cost savings measures.
Higher than market decrease of advertising revenue due to higher share of citylights in AMS portfolio of panels in large cities.
Development of offer – QR CodesExternal factors affecting AMS results in 2q 2012
20.0% AMS 3.5% Outdoor
Lower yoy number of campaigns not related to
EURO 2012
Discount pressure on outdoor advertising market
Significant increase in large format advertising
Administrative limitations in host cities of EURO 2012
Warsaw - 600 bus shelters
Cracov - 1743 bus shelters
yoy % i pp change
New localizations:
ElblagGorzow Wlkp.
Kielce
Lublin
Plock
Radom
Torun
Current localizations:Gdansk
Gdynia
Katowice
Krakow
Lodź
Opole
Poznan
Szczecin
Warszawa
Wroclaw
Radio ad market structure in 2Q12
-10-
Segment performance: Radio
Eurozet17.5%
other6.0%
Polskie Radio12.5%
Agora14.5%
Time Group 19.5%
RMF Group30.0%
The map of TOK FM’s reach (with new localizations)
1.5pp
0.5pp
5%
Financial results¹
1.5pp
1pp
Operating EBITDA margin²Operating EBITDA²
EBIT marginEBIT
- promotion & marketing
- staff cost excl. non-cash cost of share-based payments
Operating cost, incl.:
- ad revenues Revenues, incl.:
PLN million
(6.2pp)(53.5%)
(4.9pp)(76.0%)
5.9%
4.0%
17.3%
11.0%11.6%
yoy change
(5.8pp)(22.0%)
(3.7pp)(16.1%)
(13.5%)
8.1%
20.5%
14.9%15.5%
yoy change
4.4%2.0
1.3%0.6
7.2
13.1
44.7
44.345.3
1H20122Q2012
26.125.5
23.5
6.7
3.2
2.610.0%
3.212.3%
2pp
1.5pp
Growth of ad revenues mainly due to positive contribution of brokerage services while the radio ad market shrank by over 5% yoy.
Source: financials: consolidated financial statements according to IFRS 2Q12; ad market: Agora based on Kantar Media, Agora’s share incl. TOK FM, excl. brokerage, incl. cross-promotion of Agora’s other media in GRA’s radio stations if such promotion was executed without prior reservation;¹ local radio stations (incl. TOK FM); ² excluding non-cash cost of share-based payments.³ Radio Track, MillwardBrown SMG/KRC, cities of broadcasting, 15+, Apr-Jun’2012 in selected cities the test group was not representative (N<100).
Mainly the result of higher cost of aerial time purchase related to brokerage services.
Effect of shiftingadvertising campaign of Radio Zlote Przeboje (Golden Hits) to 1q12.
II I III
7 cities
8 cities 2 cities
3 cities
Częstochowa, Krakow, Lublin, Lodz,
Walbrzych, Wroclaw,Zamosc
Bydgoszcz, Katowice,
Nowy Sacz,Poznan,
Rzeszow,Szczecin,
Trojmiasto, Warszawa,
Opole,Zielona Gora.
Bialystok, Jelenia Gora,
Wolin
Position of Golden Hits in local stations ranking on particular broadcasting markets³
IV
2Q12PLN 0.15 billion
yoy % and pp change
0.7%
1.2%
2.1%
2.9%
3.1%
4.4%
5.3%
12.0%
0% 6% 12% 18% 24%
Hot
InStyle
Elle
Cosmopolitan
Joy
Glamour
Av anti
Twój Styl
0.7%
1.8%
2.2%
2.8%
2.9%
8.5%
0% 5% 10% 15%
ElleDecoration
DobreWnętrze
M j akmieszkanie
Dom &Wnętrze
Moj eMieszkanie
Cztery Kąty
2.0%
5.2%
5.6%
5.9%
7.0%
7.6%
9.2%
0% 5% 10% 15%
NajMagazyn
Olivia
ŚwiatKobiety
DobreRady
Kobieta iŻycie
PoradnikDomowy
Claudia
Ad spend structure in monthlies in 2Q12
-11-
Financial results
Segment performance: Magazines
Edipresse5.3%
Bauer26.4%
other16.0%
Murator7.9%
Burda Media Polska 6.6%
Marquard8.3%
Agora12.1%
Ringier Axel Springer
5.0%
Gruner+Jahr12.4%
2Q12
3.8pp
0.3pp
0.5pp2.7pp
0.1pp
0.9pp1.6pp
2.2pp
1.3pp
Stable readership position in selected magazine segments (Jan’12-Jun’12)
Source: financials: consolidated financial statements according to IFRS, 2Q12; monthlies ad market: monitoring of Kantar Media based on rate card data, 129 titles in Apr-Jun’11 and 125 in Apr-Jun’12, excl. specialist titles; readership: Polskie Badania Czytelnictwa, execution MillwardBrown SMG/KRC, Jan-Jun’12, N=24 151, target group: all; CCS indicator (weekly readership), elaboration Agora S.A., comparison; ¹ excluding allocations of general overhead cost of Agora S.A.; ² excluding non-cash cost of share-based payments and allocations of general overhead cost of Agora S.A.;
Operating EBITDA margin²Operating EBITDA²
EBIT margin¹
EBIT¹
- marketing & promotion
- staff costexcl. non-cash cost of share-based payments
- raw materials, energy and consumables
Operating cost1, incl.:
- advertising- copy sales
Revenues, incl.:
PLN million
5.8%
2.0
5.2%1.8
7.2
9.1
13.9
32.8
20.513.934.6
1H2012
(16.9pp)
(77.3%)
(16.2pp)(78.3%)
24.1%
4.6%
5.3%
7.5%
(8.9%)(12.6%)(10.8%)
yoy change
(21.6pp)
(88.5%)
(21.6pp)(92.0%)
56.7%
2.2%
8.6%
13.8%
(10.2%)(10.1%)(11.4%)
yoy change
4.7
2Q2012
18.67.1
11.5
18.2
7.6
4.6
0.42.2%
0.63.2%
Effect of cover price reduction in selected magazines and lower yoy copy sales.
Effect of lower advertising expenditure in categories hygienee & beauty, food & drinks,construction and interiordecoration.
Result of advertising campaigns of new magazine titles.
Development of offer
The effect of increased number and scope of development projects devoted to the magazines’ websitesand launch of new magazine titles.
yoy pp change
women luxurious interior home design lifestyle
% reach % reach% reach
The Group’s main objectives in 2012
-12-
Decreasing the operating cost base in order to adapt the Group’s mode of operation and structure to the market situation and changes taking place in media;
Intensification of actions strengthening the synergies among different segments from the Group’s portfolio as well as actions taking advantage of Internet to develop new forms and scope of activities in the so – called traditional media segments;
Intense growth of both Internet segment and widely understood Internet in the Agora Group;
Development in the cinema business by opening new cinemas;
Increasing the scale of the Group’s operations, also, through further acquisitions strengthening the Group’s position and/or diversifying the sources of the Group’s revenues.
-13-
This presentation has been prepared by Agora SA (the "Company"). The data and information contained on the individual slides do not show a complete or coherent financial analysis, nor present the commercial offer of the Company and serve for information purposes only. A detailed description of the business and financial affairs of Agora SA is presented on www.agora.pl website. All data therein are based on sources which the Company regards as credible. The Company reserves the right to amend data and information at any time, without prior notice. This presentation was not verified by an independent auditor.
This presentation may contain slides containing statements related to the future. Such statements cannot be interpreted as forecasts or other assurances in respect of future Company's financial results. The expectations of the Company's management are based on their knowledge, experience and individual views and are dependent on many factors which may cause that the actual results may differ from statements contained in this document. The Company recommends that professional investment advice is sought in case any investment in the Company's securities is considered.